U.S. Collector Coins as a good Investment???

I didn't know if a pole on this had been done so lets try.

It's about if you think U.S. collector coins are a good investment?
Not Gold, Silver, or Platinum, but good ole U.S. coins.
Not World or Paper either, U.S. coins.
So please keep the thread clean and answer honest.

Do you think U.S coins are a good investment, why, why not, when where, etc.
The last pole question ignore but tell us if collecting less than five years?

 

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Absolutely, a good investment

Let's look at the market price performance of a 60 year time period (1946-2005) of US Type coins.
9.8%: 1793 half cent in MS-60
10.3%: 1793 chain cent (Ameri.) in MS-60 (brown)
9.9%: 1864-1873 2 cent in MS-63 (red)
11.3%: 1829-1837 half dime in MS-64
10.2%: 1913 Proof buffalo nickels in PR-65
9.8%: 1798-1807 heraldic eagle dime in MS-63
12.7%: 1873-1874 liberty seated dime w/arrows in MS-65
10.9%: 1796-1808 large cents in MS-63 (red-brown)
11.3%: 1796 draped bust (small eagle) quarter in VF-20
11.8%: 1796 draped bust (small eagle) quarter in MS-65
11.9%: 1801-1807 heraldic eagle half dollars in MS-63
11.7%: 1795-1798 draped bust (small eagle) dollars in MS-63
Now contrast them against the S&P 500 return of 7.8% over that same time period.

of course, you can also find coins that didn't do well:
5.2%: 1836-1839 large cent in VF-20
4.0%: 1864-1909 indian head cents in VF-20
3.0%: 1866-1867 shield nickel (w/rays)
This says you need to choose well and look for coins whose populations (or demand) isn't in the hundreds of thousands.

Summing up, a judicious selection of US coins is definitely a good investment decision over the long run.

 

No, the appreciation of the majority of most of the modern coins will never keep up with inflation. Too many are made and squirled away in ms condition to make anything rare over the long haul. There may be an occasional exception but that will be offset 10 fold by all the others. Find a better way to invest your money. Just my opinion.

 

I don't think they are. What many see as gains in value are nothing more than coins costing more due to inflation. If a 1793 cent was still worth a cent in today's world and had the same buying power it did then, I think most of us here would be filthy rich. It's hard to explain because the more money is devalued the more it costs. Weird.
Guy~

 

Sorry Cringely, I don't know where you got your info from but the S&P has done considerably better than 7.8%. See:

http://www.simplestockinvesting.com/SP500-historical-real-total-returns.htm
:rolling::rolling::rolling:

 

It depends on what you are looking for as a "good investment". If you are looking for something that won't lose you any money, coins are a lousy investment. If you are looking for something with some risky upside potential, coins may not be the best, but they definitely are up there.

 

As everyone knows, people make good money on US coins every single day. In fact, some people make a profession of it.

And therein lies the key - the "P" word. Professional.

People make money because they have a broad skill set, which requires (but is not limited to) a great deal of numismatic knowledge. There is much more needed to be successful, including contacts and experience. Neither can be obtained or developed overnight.

Do not think for one nanosecond that someone can walk up, throw some money around, and make more money.

 

I can assure that truly exceptional US coins held their value quite well during the recent economic dip.

Don't take my word for it. Go back and check auction records.

The facts are clear - weak coins suffered, great coins did quite well during the worst financial mish-mash any of us have ever seen.

 

Thats mostly true. But you also have to remember that during the past year there have been some very famous high dollar coins that have failed to sell at auction. Sometimes even the best coins have no market and their owners are either stuck with them or are forced to sell at a loss. theres more risk involved with major rarities than with a grouping of less expensive pieces.
Guy~

 

Something that holds value is not an investment. I have some of those "great coins"and yes they are worth more than when I purchased them, but not by a lot. I want an investment to appreciate well above inflation not just keep up with it.:smile

 

Common coins have never been good investments. What is an 1871 indian cent in about good condition and porous worth? The same applies to what you call "modern coins". Those which are common will probably never be worth a great deal. Don't get me wrong here. There are states quarters with many million saved that could increase substantially IF demand goes high enough and even a common 2000 unc silver eagly in typical condition could become rare in the future. But it's a virtual certainty that a 1965 quarter in VG condition will "never" be rare and never have a substantial premium.

But to believe something like a 1968 DDO dime or a gem Philly Delaware quarter or a very low mintage modern commemorative can't increase a lot is just silly. The last twenty years has seen many prices on moderns go up hundreds fold with very low demand. They will go up far higher if the demand increases substantially.

 

Is something that loses value an investment ? That's what happened to equities, and everyone considers them an investment.

I understand your thinking. I was merely saying that those who are interested in the value of their coins should take heart that strong coins outperformed equities during The Great Funk.

 

I didn't answer the OP poll question because the few "answers" don't appropriately describe reality. It's not that simple.

My thinking is that the uninformed should NOT view coins as an investment in the classical sense. It's more complicated than that; coins are a unique market requiring specialized, esoteric knowledge and skills.

 

No - there are better "investments". Just my opinion.

 

Not lately (especially if you look at my 401 K:headbang: which is more like a 201K)

As far as the 7.8% return, I took the time period 1946 - 2005, the same 60 year time period used in Dave Bower's A Guide Book of United States Type Coins (1st ed.).

As far as investing in modern US coins, there are just too many of them to be excellent investment vehicles, no matter what HSN or various pyramid schemes are telling naive investors. It is the low population coins that will be the wise choice. Besides which, don't we collect for the joy? Financial returns are just a bonus as far as I am concerned.

 

900fine ~ when I read the statement above your quote I think of Modern Mint Sets and Business Strikes is MS condition. I don't think there are too many professionals that think these would be a great investment or that would be able to make a living at buying and then selling these at a premium high enough to "make a living at it." I'm far from a professional but I just don't see it happening. I think the professionals make their money by finding ways to buy well below market value then resell at or above market value and/or selling the bullion obtained to be melted down. My point is they make a living by implementing a diverse strategy of which I believe that the modern US coins is a small percentage. Who knows - I may be way off in the weeds on this :whistle:

 

Yes!!!!

And this is why many moderns have increased hundreds fold; they are rare. They have very low demand because most of the hobby considers anything modern to be common debased junk that has cooties but a few people have actually tried to find these "common" coins and found they aren't out there.

Let's take Norway for an example since I haven't used it before. A beautiful old silver 2 krone of 1915 with a mintage of 1/2 million is worth $125.

A newer ugly base metal 1927 2 krone with a mintage of double the 1915
is worth $550. An even more modern 1958 with a comparable mintage is worth $325.

Remember the more recent coins have very weak demand because they have cooties yet they are worth far more. Think about what causes this and then go out and see what a '72-D quarter with a type "b" reverse will cost you.

 

If you let me pick the start and stop points I can show any investment is better or worse than any other.

 

LP1 cents from the mint were a good investment. I am glad that I knew enough about coins to pick those up. If you read about it and are into it you can certainly pick up some money makers. Just picking up rolls at that bank can make you some dough.

 

Pole? As in Pole Cat....sorry, I'll go stand in the corner.


Always thought it was poll.......